Govt. allows Indian companies to list on foreign exchanges through IFSC

Why in NEWS

Union Minister of Finance said that Indian companies could now directly list their shares on foreign exchanges operating at the GIFT City-based International Financial Services Centre (IFSC) in Gujarat.

The International Financial Services Centre (IFSC)

It is a financial hub located in Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, Gujarat, India.

It was established in 2015 by the Indian government to promote India as a global financial hub.

The IFSC is a special economic zone (SEZ) that offers a number of benefits to financial institutions, including:

  • A low corporate tax rate of 15%
  • No capital gains tax
  • No dividend tax
  • No withholding tax on interest payments
  • 100% foreign ownership
  • 100% repatriation of profits

The IFSC offers a wide range of financial services, including:

  • Banking
  • Insurance
  • Securities
  • Commodity trading
  • Derivatives
  • Asset management
  • Fund management

The IFSC has been growing rapidly since its inception. In 2022, the IFSC had a total of over 1,000 registered entities, including banks, insurance companies, asset managers, and hedge funds.

The IFSC also had a total of over $100 billion in assets under management.

The IFSC is seen as a major opportunity for India to become a global financial hub.

The IFSC has the potential to attract foreign investment, create jobs, and boost economic growth.

Here are some of the benefits of the IFSC for India:

  • Increased foreign investment
  • Creation of jobs
  • Boost to economic growth
  • Increased competition in the financial sector
  • Improved financial infrastructure
  • Enhanced reputation as a financial hub

The IFSC is still in its early stages, but it has the potential to become a major financial hub in the years to come.

The IFSC is well-positioned to attract foreign investment and to become a major player in the global financial market.

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